**wadaye** said

If income inequality is soaring, that is only the derivative of the main issue which is wealth inequality which is just atmospheric.

I think this is a little bit of a chicken and egg situation.

I know there are already small precedents for taxing assets, via the Land Tax in NSW for example. But this type of asset tax needs to be scaled up dramatically in both amount and scope of assets taxed if it is to really actually tax inequality.

I note that nobody here really disagrees with the principle of asset taxation, merely with the practicalities of it and the starting points of where it should be introduced.

there are plenty of precedents for taxing assets. council rates and car rego are two common taxes which almost everyone pays. then you have taxes on estates, inheritance, property and so on. naturally different jurisdictions tax different things, but asset based taxation is very common.

I do not know if nobody here disagrees. I can only speak for myself: I don't.

The problem with taxing assets is that it is quite susceptible to both evasion and collateral damage. an example of the latter is property tax. most taxation schemes aim to be progressive, so tax is proportional to asset value. taxing a retired couple who happened to have bought in the right suburb 40 years ago makes no sense. so how do you distinguish between such a case and some millionaire who has 10 homes? you start introducing all sorts of tests and conditions which become so convoluted people trip up all the time (unless of course you can afford top quality tax advice). then you have the flat taxes which are really regressive. a farmer needs a solid SUV. Mums in Toorak don't. but it's the same car so again you end up with a bazillion exceptions.

as far as evasion goes, assets can be owned by X and used by Y, where X is a different entity taxation wise. so now you end up in an arms race. you tax, people evade, your close loophole A, they find a new one, etc. This process is clearly weighs in more on those who do not have the means to keep up: i.e. the working and middle classes.

there are other taxes which can be more effective. tax on investment transactions, tax on luxury items, tax on executive bonuses.

but ultimately it will always be a game of cat and mouse.